Bally’s Optimistic On Future Following Latest Earnings Call

Bally’s Corp.’s second-quarter earnings presentation on Wednesday, had top executives exude confidence about the company’s future trajectory. They highlighted robust year-over-year growth in their online gambling and casino operations segments while shedding light on ambitious projects in Chicago, Las Vegas, and New York.

The gambling and entertainment company reported overall revenues of $622 million for the quarter, reflecting a modest 3% increase compared to the same period last year.

Bally’s casino operations vertical witnessed a 3% year-over-year uptick in revenue.

The real standout, however, was Bally’s North American digital segment, which recorded a 95% surge in revenue compared to the previous year. This can be largely credited to the successful launch of online gambling operations in Rhode Island in March.

While the domestic digital operations flourished, Bally’s international interactive division experienced a 7% decline in revenue. CEO Robeson Reeves attributed this dip to lackluster performance in Asian markets, although the company’s UK operations remained robust during the quarter.

During the earnings call, Bally’s executives provided insights into several high-profile initiatives and development plans, painting an optimistic picture of the company’s future growth prospects.

One of the most significant announcements centered around Bally’s upcoming permanent casino in Chicago. The company revealed that Gaming and Leisure Properties (GLPI) had committed $940 million in funding to bring the project to fruition. Additionally, Bally’s sold and leased back two properties to GLPI, with an option for a third.

Reeves expressed confidence in the company’s ability to “plant its flag in the heart of the city,” with a targeted opening date in the third quarter of 2026, although September 2026 was also mentioned as a potential goal. President George Papanier affirmed that there is “now no doubt” the project will come together as planned, with demolition already underway.

The construction budget for the single-phase development has been revised to $1.3 billion, with costs expected to be incurred over the next two years.

In the interim, Bally’s is ramping up efforts at the temporary facility located at Medinah Temple. Initiatives include additional bus services for local players and the opening of a VIP lounge this week. The temporary casino has already welcomed over a million visitors since its launch last September.

Glover expressed delight in strengthening the alliance with GLPI, stating, “We are thrilled to collaborate with our partners at GLPI to bring our permanent Chicago casino to life.”

Another topic of discussion was the future of the Tropicana site in Las Vegas. Bally’s plans to demolish the existing casino to make way for a $1.5 billion stadium for the Oakland A’s baseball team. In exchange, the company will gain the right to develop a new property on the 36-acre plot, which is also owned by GLPI.

Reeves revealed that the implosion of the Tropicana is expected to occur in October, after which the company will “evaluate development options for the remainder of the 36 acres,” according to Papanier. Both executives expressed optimism about the possibilities for the site.

Bally’s also provided updates on its bid for a casino license in the Bronx, New York. The company owns the former Trump Golf Links course and has proposed a $2.5 billion casino project on the site. While licensing decisions are not expected for another year, Papanier expressed confidence in the superiority of Bally’s site compared to its competitors.

He stated that the economic benefits of the Bally’s proposal would “more positively impact the lives of many local residents,” although he acknowledged that the licensing process remains “fluid.”

Reeves noted that Bally’s igaming monopoly in Rhode Island generated $6.7 million in revenue during its first operational quarter. CFO Marcus Glover expressed confidence that the North American digital segment’s adjusted EBITDAR losses of $7 million would “narrow as the year progresses,” driven by the company’s strong igaming positions in New Jersey, Pennsylvania, and now Rhode Island.

In the UK market, Bally’s igaming revenue increased by 9% year-over-year, with Glover describing the UK operations as the “crown jewel” of the company’s international segment.

Bally’s Bally Bet sports betting platform also went live in Massachusetts and Maryland within the last month. Reeves revealed plans to launch the sportsbook in four additional markets by the end of the year. He also highlighted that costs are expected to decline as the platform transitions from in-house technology to services provided by Kambi and White Hat Gaming.

While Bally’s executives painted a promising picture, analysts at Truist Securities adopted a more cautious stance in their research note released immediately after the earnings call.

The firm noted that the operator’s revenues fell short of estimates across all three segments. However, the most significant factor contributing to the analysts’ cautious outlook was the lack of information provided regarding the Standard General takeover and merger with Queen Casino & Entertainment.